How To Stop Nested List Overlapping Parent List?

See here: http://jsfiddle.net/wHztz/67/ In this example the colors are placeholders for background images, I noticed the nested list stops overlapping when the display:block is rem

Solution 1:

.innerLeft ul li {
    clear: left; /* Added */
    padding:0px;
    margin:0px 0 10px 0;
    height:18px;
}

http://jsfiddle.net/wHztz/70/